3 Reasons Why The Denver Housing Market is (Still) Hot...

Top three reasons many would agree it’s a safe bet and smart decision to buy in the current housing climate.

1. Strong Appreciation Rates

 The Denver real estate market has demonstrated consistently strong appreciation rates over the years. According to data from the Denver Metro Association of Realtors, the median home price in Denver has experienced steady growth, with an average annual appreciation rate of around 5% over the past decade. This trend indicates a healthy and resilient market, making it an attractive option for those looking for long-term investment opportunities.

Average Home Appreciation from 1992-2023 is 6.8%!

Looking at this chart, you’ll see how homes have appreciated over the last ten years. We see three slight declines, mostly during the 2006-2008 recession, (where keep in mind lending practices were out of hand) otherwise we saw healthy upticks in appreciation over time.

  • If you can commit to owning a home at least five years, chances are you will make a profit from owning your home. 

2. Limited Housing Inventory

One significant factor contributing to the competitiveness of the Denver market is the limited housing inventory. The city has been experiencing a shortage of available homes for sale, particularly in desirable neighborhoods. This supply-demand imbalance has led to increased competition among buyers, resulting in quicker sales and potential bidding wars. As a result, home prices have continued to rise, creating favorable conditions for sellers and still fantastic opportunities for buyers.

  1. To give some context, experts say we should have around 16,000 homes on the market to equal a balanced market. In 2023, Denver Metro on average saw about 4,500 homes for sale per month.
  

3. Influx of Out-of-State Buyers

Denver has become a sought-after destination for out-of-state buyers, contributing to the demand for housing in the region. The city’s growing reputation as a desirable place to live, work, and play has attracted individuals from across the country. Factors such as a strong job market, favorable business environment, and a high quality of life have made Denver an appealing option for those seeking a change of scenery or better opportunities. The influx of out-of-state buyers has further fueled the demand for housing, leading to increased competition in the market.
 

Conclusion: It is important to note that while these facts highlight positive aspects of the Denver market, real estate trends can vary and are subject to market conditions. It’s important to conduct your own research, consult with professionals, and consider your individual circumstances before making any investment decision. 

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